Wells Fargo & Company recently announced the termination
of four senior managers due to the fraudulent banking
practices scandal.
All the terminated managers worked in Community Banking. Head
of the unit, Carrie Tolstedt, lost her 2016 bonus, forfeited approximately $19
million in unvested equity awards and did not receive severance pay when she
was fired.
Former Community Bank Chief Risk Officer Claudia Russ
Anderson, Arizona Lead Regional President Pamela Conboy, former Los Angeles
Regional President Shelley Freeman, and Head of Community Bank Strategy and
Initiatives Matthew Raphaelson were terminated for cause by the Wells Fargo
board of directors.
“None of these executives will receive a bonus for 2016,”
Wells Fargo said. “They will forfeit all of their unvested equity awards and
vested outstanding options.”
In addition to the latest employee terminations, the bank’s
former CEO John Stumpf was forced out after federal officials announced that
bank employees had opened accounts without customers’ permission. Up to 2
million bogus accounts were opened. The bank was fined $100,000 for the fraudulent
accounts.
Wells Fargo terminated 5,300 other employees for opening the unauthorized checking and credit accounts.
The board’s independent investigation should be completed by
April, when the bank will hold its annual shareholders meeting. The results of
the investigation and any following actions will be made public before the meeting.
Wells Fargo is one of the largest commercial bank agricultural lenders in the nation.
